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Argentina Analysts Project 2025 Inflation at 23.3% Amid Economic Adjustments

Analysts forecast Argentina’s inflation at 23.3% for 2025, a slight rise from last month’s predictions. They also increased growth estimates to 4.8%. Recent government measures and economic trends show a commitment to reducing inflation, with a focus on maintaining stability while negotiating new loans from the IMF.

According to a central bank market expectations survey, Argentine analysts expect year-end inflation for 2025 to remain at 23.3%. This forecast reflects an increase of 0.1 percentage points from last month’s predictions. Additionally, the analysts raised their estimated economic growth for 2025 by 0.2 percentage points, anticipating it will reach 4.8%. The survey was conducted between February 26 and 28 and included responses from 39 participants such as consultancies and financial institutions.

Argentina’s INDEC statistics agency plans to release its February inflation data on Friday, along with its economic growth statistics for the last quarter of 2024 set for March 19. Earlier in January, the central bank reduced its benchmark interest rate to 29% from 32% due to indications of declining inflation. Notably, the country recorded a monthly inflation rate of 2.2% in January, marking its lowest level since mid-2020.

While Argentina’s annual inflation soared nearly to 300% early last year, it has since stabilized to approximately 85% in January 2023. In this context, hospitality services and housing costs exhibited the most considerable increases. The analysts predict that inflation for the previous month would align closely with or slightly exceed January’s rates while indicating expectations of a downward trend throughout the year.

President Javier Milei’s administration is prioritizing the reduction of inflation amid strict austerity measures, all while aiming to sustain positive economic momentum, particularly as it seeks a new loan from the International Monetary Fund (IMF). This ongoing effort underscores the government’s commitment to stabilizing the economy and lowering inflation rates.

In summary, Argentine analysts predict inflation will reach 23.3% by the end of 2025, alongside a modest increase in economic growth expectations to 4.8%. The government, under President Javier Milei, remains focused on controlling inflation, which has significantly decreased from its peak, while preparing for upcoming economic reports and seeking IMF assistance. These factors highlight the importance of maintaining economic stability moving forward.

Original Source: www.marketscreener.com

Victor Reyes

Victor Reyes is a respected journalist known for his exceptional reporting on urban affairs and community issues. A graduate of the University of Texas at Austin, Victor has dedicated his career to highlighting local stories that often go unnoticed by mainstream media. With over 16 years in the field, he possesses an extraordinary talent for capturing the essence of the neighborhoods he covers, making his work deeply relevant and impactful.

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